Asia’s jet fuel market structures were buoyed by firmer supply-demand fundamentals, with November spot activity in full swing and the arbitrage with U.S. west coast remaining wide, while physical discussions on the window slowed.

Offers from China majors emerged again, with one refiner offering around two 40,000-60,000 metric ton cargoes via tenders that close Wednesday and Thursday.

Earlier on Tuesday, one China-origin cargo was sold at premiums of nearly $1 a barrel, two sources said.

Indonesia’s Pertamina also sought for first-half November arrival cargoes via a tender that closes today, traders say, further supporting markets.

Jet fuel refining margins (JETSGCKMc1) however edged down to around $21.1 a barrel, though regrade (JETREG10SGMc1) extended gains to premiums of more than 20 cents per barrel.

Meanwhile, for diesel, paper market structures eased further ahead of the assessment month rollover tomorrow and overall some cautious trading sentiment.

Traders were cautious on the narrower east-west price spreads since late last week, following weakness in ICE gasoil futures and slightly firmer Asian fundamentals in comparison.

Talks of possibly lowered China-origin exports for November however could provide some price support for Asia in near-term, several trade sources say.

The 10ppm sulphur gasoil refining margins (GO10SGCKMc1) slipped for a second straight session this week to $20.9 a barrel.

Cash differentials (GO10-SIN-DIF) however still firmed to around $1.68 a barrel amid firmer bids in the spot market.

SINGAPORE CASH DEALS

– No deals for gasoil or jet fuel

INVENTORIES

– U.S. crude oil stockpiles were expected to have risen last week, while gasoline and distillate inventories likely fell, a preliminary Reuters poll showed on Tuesday.
– Middle distillates stocks held at Fujairah Oil Industry Zone gained week on week to nearly a seven-month high of 2.95 million barrels in the week ended October 13, according to industry information service S&P Global Commodity Insights.

NEWS

– Supertanker freight rates surged this week and are set to stay elevated on U.S.-China tit-for-tat hikes in port fees and concerns about the fallout from U.S. sanctions on a major Chinese crude oil terminal.
– Trading firms have diverted at least five more crude oil tankers from a major port in eastern China after the U.S. imposed sanctions on an import terminal there on Friday, according to trading sources and shipping data.
– French oil major TotalEnergies expects to report an increase in third-quarter results, it said on Wednesday, as higher upstream production and improving margins for refining crude offset lower oil prices and liquefied natural gas output.
– Oil prices fell on Wednesday, extending losses from the previous session, as investors weighed the International Energy Agency’s warning of a supply surplus in 2026 and U.S.-China trade tensions that could curtail demand.
Source: Reuters